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Commercial property market is growing in Gujarat and it has seen huge NRI investments at a time when the Indian currency is continuously sliding against dollar and the NRI community is keen to take advantage of this rupee depreciation. Analysts tracking the real estate market in this part of the world are not at all surprised by this trend. Most notable investments were made in Ahmedabad and Vadodara.
They believe that the Gujarati community is always interested in business and most of the NRIs from the state are conscious of the fact that once their job tenure is over in other countries, they have to get back to their roots and indulge in what they know is the best business proposition. Hence, despite volatile market conditions, they were interested in buying commercial property in the state.
Take the example of a financial analyst Chiragh Sampat, an NRI from Boston who recently bought a posh office in one of the upmarket locations of Ahmedabad. With the kind of investment that went into this deal, Sampat could have better bought a residential apartment, but, his choice and priority was pretty clear. Sampat avers, “Keeping the long-term perspective in mind and the amount of savings, I made this decision. Tomorrow when I come back to settle in the city, I may have to live in a rented apartment, but my office address will be permanent as I don’t want a rented office and keep shifting every year, only to confuse my clients.“
There are many property buyers across Gujarat who think on the similar lines. It is believed that the property market which sees a healthy growth of the commercial segment generally does better, even though this segment may be only 15-20 per cent of the real estate portfolio.
Further, commercial investment gives better rate of interest (ROI) in the long run. Also, commercial investment is the best indicator to assess economic activity and the purchasing power of the given market.
Developers and builders of Gujarat agree that the commercial real estate market in the state has shown tremendous development in the last few years. Being a trade hub, the state has proven to be one of the most sought-after locations for commercial investment. Also, the presence of excellent infrastructure in the state has aided in this trend. Further, with the growth of varied sectors and industries, Gujarat has turned out to be the home for many important IT companies, industrial and manufacturing units, corporates, KPOs, BPOs, etc. Hence, there has been a considerable rise in demand for commercial spaces.
Shashank Patel, a developer, says, “Gujarat has emerged as a frontrunner due to various reasons. From a real estate point of view, there is not one, but many demand drivers promoting growth of commercial properties in Gujarat like the infrastructural capacity, good roads, flyovers and bridges, etc. The favourable FDI policies have also proved beneficial for the realty sector and helped it to spread its wings across borders.”
The real estate being a very critical sector for our economy, has a huge multiplier effect and facilitates in driving financial growth. Hence, Gujarat is expected to revitalise with the help of infrastructural growth which will, in return, speed up the real estate activities both, in the commercial as well as residential spaces. Facts indicate that the slowdown has its effects on the overall real estate market of Gujarat and the commercial property market is no exception.
However, the effects of the slowdown have been relatively less on the commercial segment as compared to the other segments of real estate. Over the years, there has been a complete makeover of Gujarat and the real estate sector has grown by leaps and bounds.
Further, with increasing application of modern technology and practice of up-to-date techniques in the realty sector, Gujarat is poised to materialise into a state showcasing ideal growth at a superlative pace. The state is well connected, internally as well as externally through its elaborate transit systems, adding to its commercial value. With such essential features and developments in Gujarat, the commercial property market will definitely pick up velocity in the times to come.
Times Property, The Times of India, Ahmedabad